Head-To-Head Comparison: Agrium (AGU) & Its Rivals

Agrium (NYSE: AGU) is one of 29 public companies in the “Agricultural Chemicals” industry, but how does it contrast to its rivals? We will compare Agrium to related companies based on the strength of its earnings, institutional ownership, risk, profitability, analyst recommendations, dividends and valuation.

Institutional & Insider Ownership

65.9% of Agrium shares are owned by institutional investors. Comparatively, 47.4% of shares of all “Agricultural Chemicals” companies are owned by institutional investors. 16.0% of shares of all “Agricultural Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Agrium has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Agrium’s rivals have a beta of 0.87, meaning that their average stock price is 13% less volatile than the S&P 500.

Dividends

Agrium pays an annual dividend of $3.50 per share and has a dividend yield of 3.3%. Agrium pays out 134.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Agricultural Chemicals” companies pay a dividend yield of 2.8% and pay out 74.1% of their earnings in the form of a dividend. Agrium has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Agrium and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agrium 0 6 9 0 2.60
Agrium Competitors 179 738 898 32 2.42

Agrium currently has a consensus price target of $113.41, indicating a potential upside of 6.12%. As a group, “Agricultural Chemicals” companies have a potential upside of 7.83%. Given Agrium’s rivals higher probable upside, analysts plainly believe Agrium has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Agrium and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Agrium $13.67 billion $592.00 million 41.10
Agrium Competitors $3.86 billion $330.02 million -16.67

Agrium has higher revenue and earnings than its rivals. Agrium is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Agrium and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agrium 2.64% 9.62% 3.49%
Agrium Competitors -1,012.86% 3.46% 3.31%

Summary

Agrium beats its rivals on 10 of the 15 factors compared.

Agrium Company Profile

Agrium Inc. is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company’s segments include Retail and Wholesale. As of December 31, 2016, its Retail business unit marketed crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,500 retail locations in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay. Its Wholesale business unit manufactures, mines and markets a range of nutrients, including nitrogen-based, potash and phosphate-based crop nutrient products. As of December 31, 2016, its Wholesale business unit owned and operated five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States.

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